In Network Function Virtualization (NFV), network services are virtualized. In some cases, it may be possible to deploy network services next to Virtual Machines (VMs), and provide services on the communication between any two VMs in data center, or between any VM and the Internet. In virtualized computing environment, certain Software-defined Networking (SND) technology may be employed to implement service insertion.
Small scale date centers usually do not require a SDN solution to manage its network. However, implementation of virtualized services may still require a SDN solution.